Eight Kenyan Banks Admit to Aiding Looting of Billions of Shillings from NYS

The Director of Public Prosecutions (DPP) Noordin Haji says that eight Kenyan banks have admitted to playing part in the looting of billions of shillings from the National Youth Service (NYS).

Haji says he has signed a plea-bargaining deal with the lenders to pay more than Sh300 million in fines slapped on them by the Central Bank of Kenya (CBK) after they were found culpable of facilitating movement of cash stolen from the youth agency.

In September, the CBK imposed a fine of Sh392 million on five banks found to have violated financial rules in respect to the handling of Sh3.5 billion stolen from NYS.

The five lenders include Standard Chartered Bank, Equity Bank, Kenya Commercial Bank (KCB), Co-operative Bank of Kenya (CBK), and Diamond Trust Bank (DTB).

KCB was handed the highest fine (Sh149.5 million) followed by Equity Bank (Sh89.5 million), Standard Chartered Bank (Sh77.5 million), DTB (Sh56 million) while Co-operative Bank will pay Sh20 million.

More than 40 suspects including former Youth Affairs Principal Secretary Lillian Omollo and former NYS director general Richard Ndubai are facing charges related to theft of funds from NYS.